Dow Jones Transportation Average vs. S&P 500 This interesting chart suggests that the Dow Jones Transportation Average underperforms in secular bull markets. Actually, the S&P 500 had higher returns when the Dow Jones Transportation Average experienced negative momentum. Image: Oppenheimer & Co.
Margin Debt and S&P 500 This chart shows that margin debt has not recovered from last December’s lows, while the stock market has risen sharply.Usually, it is mostly bullish for stocks, because investors are still fearful. Image: Yardeni Research, Inc.
10-Year Treasury minus 1-Year Treasury Yield Spread vs. S&P 500 Returns If history helps us to predict the future, the 10y-1y treasury yield spread suggests low returns ahead for U.S. stocks. After 10 years of a bull market, our stock market forecasting model also shows that the market follows a different path in 2019. Statistically,…
The S&P 500 Hits All-Time High Bulls make money and are happy again… Yes, but until when? Keep in mind that the US stock market is currently overvalued by 9%. Image: Hedgeye Risk Management LLC